How Affiliate Marketing Works

Hey guys, Marcus here from

What we’re going to do is give you a short overview of how affiliate marketing works. Basically here’s how it works.

These companies want one thing.

These companies can be big, they could be small just any companies right that are willing to pay to get customers.

What they’re going to do is they’re going to pay you several different ways;

  • Pay per sale. That means you drive someone to a site they get a sale or they buy something. You get credit for that sale the company pays the affiliate for the sale.
  • Pay per lead. This is when someone fills out a form on a website; it could be big like a mortgage application or small like just a zip code. 
  • Pay per download. This is one of my favorites because lots of people out there will pay for just the download.  I drive someone to a site, they download free recipes and I get like a dollar sometimes even as much as five dollars for getting them to download.
  • Pay per click. Lots of other ways that you can get paid now.
  • Pay per call. Where a company will pay each time someone calls on a number from the site. That you sent them, it’s all tracked through the phone numbers. So there’s very little that you have to do in terms of traffic.

Basically, the companies want these customers and they know the affiliate has the ability to drive traffic. The only way they’re going to get these customers is by putting their stuff in front of them. So this company comes to you.

You’re getting paid on an action done.

  1. They buy something.
  2. They fill out the form.
  3. They download.
  4. They click on something.
  5. They call a number.

You are producing an action from your traffic and that is what the company is willing to pay.

You might say;

What we do is we have something that kind of bridges the gap for us right.


In this affiliate house you have places like the Click bank, Commission Junction, and link share. For paid for clicks, you could use something like AdSense, Google AdSense or you go to cpa marketing if you want to get paid a lot and have a rep that helps you out. What you would do is you would go to a cpa network.

What these people do is they go to companies and they work out these deals.

“Just the other day I was looking at something for my omelet website, I teach people how to make omelets and I found that there was that offer you see on TV where they get those two really cool frying pans for $20.”

This is what we call an As Seen on TV offer.

I can’t really go to that company and say

But this affiliate house has the ability to go to that company because they have thousands of affiliates. When they go to these companies they say

The affiliate house takes a zero margin to as high as a 20% margin. This only comes out if you do the action.

The cool thing is this network handles everything. All i do is i log in one time I look at my account and see how much I make and get one wire or a check every week. Some of them pay daily but I wouldn’t go with those unless it’s a really trustworthy. So you get one check at the end of the day. You get one place to log in and see your stats.

The key is if you’re going to be an effective affiliate, learn to drive traffic, it’s not that hard to do you could buy traffic, you can generate it free, and you can make little videos

This is how affiliate marketing works in a nutshell. What happens is the company uses what’s called a cookieThe cookie tracks everything, so this affiliate network is going to give you an individual link for each offer. Very easy…

This cookie now fires, it says to check it out, Marcus got a sale.

This is how affiliate marketing works.

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